The Klein Law Firm announces that a class action complaint has been filed on behalf of persons and entities that purchased or otherwise acquired DXC Technology Company (NYSE: DXC) common stock pursuant and/or traceable to the registration statement and prospectus or other documents issued in connection with the April 2017 transaction by which Hewlett Packard Enterprise Company’s Enterprise Services segment was spun off and merged with Computer Sciences Corporation, Inc. to form DXC. The action, which was filed in the United States District Court for the Northern District of California, alleges that the Company violated federal securities laws.
In particular, the DXC Technology Company lawsuit alleges that (1) the planned “workforce optimization” plan involved implementing arbitrary quotas; (2) the plan would cut thousands of jobs at the Company; (3) jobs that were particularly at risk of being cut were held by longer-tenured, knowledgeable, and highly compensated senior personnel; (4) these job terminations were selectively timed to artificially inflate reported earnings and other financial metrics; (5) at the time of the formation of DXC Technology Company, J. Michael Lawrie (the incoming President, Chief Executive Officer, and Chairman of the Board at DXC) had forecasted plans for a $2.7 billion workforce reduction in the first year; (6) as a result of these workforce terminations, the Company was unlikely to deliver on client contracts; (7) that, as a result of the foregoing, the Company’s clients would be dissatisfied and the relationships would be impaired; and (8) as a result of the foregoing, Defendants’ positive statements about the Company’s business, operations, and prospects, were materially misleading and/or lacked a reasonable basis.
Shareholders have until November 15, 2019 to petition the court for lead plaintiff status. Your ability to share in any recovery does not require that you serve as lead plaintiff. You may choose to be an absent class member.
To learn more and keep informed, complete this form >